Pacific Oil Company Failed Negotiation

Richard Paguirigan National University/Law 402 professor Hamlin January 22, 2012 1. Identify the strengths and weaknesses of Fontaines and Gaudins negotiating dodging in their deliberations with dep destructionent Chemical Company. Fontaine and Gaudin started off with a competitive outline, wherein the conclusion of the negotiation was more distinguished than the human kinship. This is evidenced by the fact that the securities industry for VCM would be oversupplied in a a couple of(prenominal) years due to the building of impudent chemical plants and a drop in demand. pacific only takeed to adept an extension from dependent to enable them to af secure operations for just a term longer or until they could come up with a new chore scheme for the future. There is nonhing to suggest that peaceful had any incentive to maintain a relationship with Reliant after that time. Although peaceable was considering becoming a producer of premature ventricular contraction produ cts in order to minimize its dependance on external sales, no firm decision had yet been made so peace-lovings possible option was still up in the air.Fontaine and Gaudin were aware(p) that they had less than a three year window in which to deform the contract. They withal knew that Reliant was probably aware that the marketplace was red ink soft. Although Fontaine and Gaudin began their efforts with a sense of urging to extend the contract with Reliant, they came into negotiation not having really developed their system and how they would clap it. They were unprepared for the issues that Reliant brought up and were essentially on the defensive throughout.The sense of indispensableness that exhibited coming into the negotiations was undermined by their failure to educate time limits or deadlines. They were fair enlivened for entrapment by the Reliant since they really had no information about Reliants situation and therefore could not call or reverse the attack. A lthough Competitive outline was the intent, poor planning and unanticipated problems along the way ca utilize their strategy to get flipped somewhat and they succumbed to utilizing an Accommodating strategy (lose to win) in the end.Strengths The conform to strategy may be used to encourage a more commonist relationship, to increase support and assistance from the early(a), or even cool off bitter feelings if there is tension in the relationship. If the relationship is ongoing, then it may be peculiarly appropriate to back down now, to turn back communication lines open and not stuff the opponent to give in on something that they do not want to question (Lewicki 18). Weaknesses In most cases, this is a short strategy used with the expectation that alteration now ordain create an opportunity to achieve moment goals in the future.This strategy should only be used when the outcome is not very important or if the primary objective is to improve the relationship. Unfortuna tely, for Pacific the outcome was important though the relationship wasnt. 2. Identify the strengths and weaknesses of Hauptmans and Zinnsers negotiating strategy. Hauptman and Zinnser utilized Competitive strategy (win to lose). Unlike Pacific, Reliant had done its seek and was fully aware of Pacifics situation and the market dynamics going on at the time and, presumably well into the future.They had a plan, developed a strategy and used it to their advantage. Essentially, Reliant had been habituated no incentive by Pacific to extend the contract. They had done their research, and armed with the noesis gleaned and now aware as to the reasons why Pacific was so eager to extend the contract, they took the opportunity to gain the upper hand. Since Pacific never imposed any deadlines, they stalled for as long as they could all the spell arguing for, and getting a calculate of concessions along the way.They were never on the defensive at any time since Pacific had nothing on them. They were in a favorable position to entrap Pacific, causation them to change strategies which resulted in failed negotiations. Strengths The Competitive strategy is effective in getting the other party to give in, and thus to carry out the competitors needs now. Weaknesses. The outcome of the negotiation is more important than the relationship. It strains and endangers the relationships amidst the parties. 3. What action should Fontaine take at the end of the case?Fontaine needs to reverse the price done. Perhaps a collaborative strategy is in order. If Fontaine can convince Reliant that they will get into the PVC business after all and possibly buzz off a PVC products manufacturer, hence a competitive threat, maybe Reliant will then get off their spirited horse and agree to cooperate for the mutual benefit of everyone. Pacific will need to make some concessions. Price, exclusive contracts or even a non-compete agreement may convince Reliant it would not be worth it to retal iate against Pacific.